Parkland USA to Acquire 84-Location Dealer Business
CALGARY, Canada — Parkland Fuel Corp., through its Parkland USA subsidiary, entered an agreement to acquire Kellerstrass Oil Co.
Based in Salt Lake City, Kellerstrass is a regional retail dealer and commercial fuel business with branches in Utah, Idaho and Wyoming. In addition to trucking, routing and distribution practices, the company brings a strategic 17-car rail spur and storage assets, commercial card locks and an 84-location dealer business.
The deal will complement and strengthen Parkland's existing Rockies Regional Operating Center, according to the company.
"We continue to deliver on our growth strategy and expand our U.S. footprint," said Doug Haugh, president of Parkland USA. "We expect this acquisition will support the growth of our North America diesel platform, create supply efficiencies and deliver logistical benefits. We are delighted to enter the Idaho market and expand our presence in Wyoming and look forward to welcoming the Kellerstrass team to Parkland."
Pro forma, Parkland expects annual run-rate adjusted EBITDA of approximately C$70 million for its U.S. segment. The transaction is subject to customary closing conditions and is expected to close in the first quarter.
Canada-based Parkland is an independent supplier and marketer of fuel and petroleum products and a leading convenience store operator servicing customers across Canada, the United States, the Caribbean region and the Americas through three channels: retail, commercial and wholesale.